A Wells Fargo survey found that customers think Victoria’s Secret is too pricey

L Brands Inc.’s Victoria’s Secret is losing customers on price, according to a consumer study conducted by Wells Fargo, and even the brand’s efforts to stock popular items like bralettes won’t bring them back.

Wells Fargo’s study finds that 48% of customers polled had shopped at Victoria’s Secret less in the past year. And 28% said they plan to shop there less in the next 12 months.

Of those who had shopped less over the past year, 58% said prices were too high, which, Wells Fargo said, makes it the top explanation for the attrition.

“As L Brands has been known to take price up a bit each year with little resistance, it appears that the brand may be approaching a price ceiling, as prices may now be driving customers away,” the Wells Fargo note said, adding that Victoria’s Secret bras sell for 50% more than the competition, on average.

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Victoria’s Secret also “may be falling out of favor,” with 68% of respondents saying they like the brand less than they used to. Of that group, 60% say they think the brand feels “forced” or “fake.” Wells Fargo analysts think a shift toward natural beauty and body acceptance may be putting Victoria’s Secret out of fashion.

“We believe that new management in place at Victoria’s Secret recognizes the change in consumer attitude, and is attempting to tweak the Victoria’s Secret image to one that is more in line with current trends—brand imagery is now leaning toward more natural looks and relatable beauty,” analysts led by Ike Boruchow wrote. “However, given how fundamental the ‘sexy’ image is to the Victoria’s Secret brand, we believe a full-brand pivot to catch up with current trends may be challenging to execute.”

L Brands /quotes/zigman/14920973/compositeLB+4.03%
reported a 4% same-store sales decline in August, with Victoria’s Secret having a negative impact of about 2 percentage points. Sales also fell 1% for the month to $842.1 million.

The brand has a few problems working hand-in-hand. Victoria’s Secret has said that it wants to reinvigorate its “constructed bra” business, the lined, push-up bras the brand is known for. But those bras are usually more expensive than bralettes.

There is the aforementioned trend toward a more natural look, which has led to sales growth for bralettes, undergarments that are unlined and popular with millennials and women who like sheer fashions.

Victoria’s Secret has gotten in on the bralette trend, as well as sports bras. However, the brand faces competition from companies like American Eagle Outfitters Inc. /quotes/zigman/183513/compositeAEO+1.42%
and its Aerie line, Urban Outfitters Inc. /quotes/zigman/55244/compositeURBN+2.18%
and others.

Finally, Victoria’s Secret has reported declines tied to its exit from the swim and apparel categories. Companies like Abercrombie & Fitch Co. /quotes/zigman/167627/compositeANF+0.70%
have been willing to pick up the slack. Experts have expressed concern that Victoria’s Secret hasn’t replaced the volume lost after shutting down these segments.

Wells Fargo analysts believe that the brand’s efforts to move into sports bras and bralettes may be alienating its core customers. These key shoppers are what analysts call “basic bra customers,” and their survey found that they are among those who say they plan to shop there less in the coming 12 months.

“This could imply that as the company diversifies into auxiliary product categories, they are taking shelf space away from more productive categories that appeal across a broad range of consumers, and are thereby turning a large segment of their customer base away,” the note said.

Analysts findings show that those who don’t buy Victoria’s Secret bralettes, don’t buy bralettes at all.

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